Sat, 30th of May, 2009

By Setyo Wibowo (analyst@fxinstructor.com)

EURUSD Outlook

Remember my EURUSD analysis on May 23th? (just scroll down if you forget) I said that up to the third week of May the pair had significant bullish momentum and could continue throughout the rest of the month and might targeting higher bullish targets: 1.4173 (target 1), 1.4350 (target 2), 1.4716 (target 3). So far, my bullish scenario is still on the right track. After break above 1.4050 area yesterday, the pair continued it’s bullish momentum, topped at 1.4167 and closed at 1.4136. We can say that the first bullish target, 1.4173 (50% Fibo Retracement of 1.6037 – 1.2327) has been hit yesterday, so my attention now is on the second target, 1.4350 area which hopefully can be reached on the upcoming week. We might have some downside corrections next week since 1.4173 area is an important resistance of major movement, but as long as the pair stay above 1.4050 we can expect further bullish continuation scenario. See you guys next week and have a great weekend!